National intermediated home and contents agency Castle Insurance says it has fast-tracked the rollout of “net commissions”, as brokers increasingly switch to fee-only models to avoid new compliance demands.

Brokers can now quote and bind Castle policies via the Ebix Sunrise Exchange, Unmand and InsureBot platforms either with full commission (currently 17.5%) or zero commission.

National broker development manager Pat Campbell says requests for net commissions on household insurance have risen since the introduction of the corporate regulator’s informed consent rules last July.

The rules require brokers providing personal advice to obtain informed consent from retail clients before being paid commissions for product sales. insuranceNEWS.com.au previously reported that some intermediaries have since switched to a general advice model to avoid what they consider onerous demands, and others are choosing to ditch commissions and charge a fee instead.

“Brokers are seeking options as to how they manage commissions and fees for their clients while remaining open and transparent,” Mr Campbell said.

“Combined with our agile service and competitive pricing methodology, this commission option will allow more brokers to offer much-needed insurance alternatives for their clients.”

MD Bradley Heath says “being agile and open to feedback” is part of Castle’s value proposition.

“This is another example of our commitment to deliver for brokers and policyholders,” he said.

The option to select gross or net commissions is available for Castle only “at this stage”, and not the associated Queensland brand, Sure Insurance.

Brokers say it is common across other underwriters to be able to adjust commissions down, but not up. This can either be on a sliding scale or a choice between full commission and zero.

Castle was launched last year, underwritten by QBE.

---

From the latest Insurance News magazine: AM Best's regional chief on a new assessment service that puts underwriting agencies under the spotlight

---